Former Tyrant and current Megas Strategos Malgus III Thaller has apparently vanished into thin air. He has not been seen in public or in private by anyone for more two weeks now and many are just puzzled being used to see him visiting the Archon four times a day to "deliberate on matters." The Government has said that it is concerned about Thaller's apparent disappearance and has begun an investigation into it. In the mean time his father in law Edi Bej Fisnik currently deputy Megas Strategos has been appointed to replace him as commander-in-chief of the Armed Forces.

The capture of former Tyrant Malgus III Thaller has created a political crisis for Archon Dr Enver Shehu. The Archon has been accused of "selling" Thaller (a highly popular figure in Kalopia since the imposition of the Embargo) to Artanians in return for personal financial gain. A set of documents were published by the Majatran Times showing supposed transfers of 25 million LOD to bank accounts owned by a "E. Shehu", documents which the Archon has denounced as forgeries. Tens of thousands have begun protesting all over the country calling for Shehu to resign as Archon.

Archon Dr Enver Shehu

The anti-Shehu feeling has spread to the National Assembly which has refused to pass his landmark Democratisation Bill demanding that he answer for the alleged collusion with Dorvik in the Thaller capture. There have also been whispers of possible impeachment proceedings for abuse of office. Such a strong attitude from the National Assembly has been greeted with suspicion by the Archon and his allies who suspect that the usually docile body is being manipulated somehow. Perhaps most crucially for the Archon, the Armed Forces under acting Megas Strategos, Ret. Gen Edi Bej Fisnik have adopted an ambiguous tone, stressing their desire for stability and functional, non-corrupt government.

A standoff has developed between Archon Shehu and the National Assembly following the legislative body's decision by a vote of 242 to 31 to impeach the Archon for corruption and abuse of office in what is now known as the Dorvish Affair. The Archon has refused to hand over power and said he deemed his impeachment as unconstitutional and driven by anti-democratic forces. The National Assembly has furiously denounced him and has proclaimed its head Kostas Rama as Acting Archon in accordance with the Constitution. The courts have sided with the legislature and now only one "branch" of government is left to pick a side - the Armed Forces. The head of the Armed Forces Megas Strategos Edi Bej Fisnik has so far refused to pick, only pleading with both sides to settle their differences amicably.

Megas Strategos Edi Bej Fisnik has taken over control of the country in a series of moves which overwhelmed the feuding executive and legislative arms of the State. The army leader "paid a visit" to the National Assembly with 700 troops and the body found itself compelled to elect a new President - the Megas Strategos. As President of the National Assembly, Bej Fisnik became the Acting Archon as recognised by the same National Assembly. After his election, he and his troops moved on to the Presidential Palace, surrounded it and asked Archon Shehu to "comply with the constitution" and resign as per his impeachment. Shehu,much like the National Assembly found himself compelled to agree and resigned and was taken into custody shortly after that, leaving Bej Fisnik to assume the office of Acting Archon. More troops were sent out to secure various strategic positions in the capital and an election has been called with only candidate on the ballot - the Acting Archon.

Acting Archon Edi Bej Fisnik

Bej Fisnik in his first address to the nation condemned the corruption of the Shehu government and promised to restore democracy when it was opportune. He vowed to try and get his son in-law Malgus III Thaller back home when he belongs, denouncing what he called "Dorvish international terrorism". This statement is thought to be made to dismiss rising rumours that the new Archon was involved in the kidnapping as part of a complex plot to seize power in the country.

A study commissioned by the Ministry of Finance has blamed much of Kalopia's economic depression on the Thallerist economic policies rather than the embargo adopted by a number of countries in support of the Security Council decision. The Simitis study showed that it was unwieldy nationalisation and tax hikes which had the most effect on the economy. The embargo, according to the study had a much smaller effect than previously thought, the most damage being that from sanctions imposed by neighbours Deltaria and Jakania but with Deltaria since lifting the sanctions, their effect is much less.

The report only appears to confirm Archon Edi Bej Fisnik's economic strategy which appears to be a mix of economic liberalisation, a campaign to get the embargo lifted (with some success so far) and strengthening economic ties with countries which have not imposed sanctions on Kalopia yet. The study predicted that the economy would enter growth for the first time in 5 years in mid-4167, urging faster privatisation, tax cuts and deregulation. Hardliners in the Archon's cabinet, pointing at the slow pace of embargo relief and Istalian triumphalism, have urged him to abandon any kind of detente with the Security Council, tighten the alliances with anti-globalist nations and redeploy troops to al-Najd and if necessary, Mossavi (the two infighting halves of the breakaway Federal Republic of Kalopia-Wantuni)

The two Kalopias, Kalopia and Kalopia-Wantuni have been reunified ending nearly seven decades of a split which was formalised in 4219. Delegates from the two countries approved of a constitution which will set up a loose confederation between the two states. The Central Majatran Confederatin will be governed by a 13 member Presidential Council along with a bicameral legislature and Superior Court. Three men have been credited with driving the whole process, they are Razamid laureates Ret. Lt.Col Wolfgang von Redditz (Kalopian Foreign Minister from 4258-4270) and Tayyib Qadatah (First Minister of Kalopia-Wantuni from 4266-4270) and oil tycoon and Razamid Peace Prize founder, Prince Baibars al-Razama. All three are set to be elected to choice spots on the inaugural Presidential Council.

The new nation however faces a number of significant issues. The violence in al-Najd has dramatically gone down in intensity but a few rogue terror groups remain active in the southern parts of the province. The western half of the Confederation remains under the autocratic leadership of Archon Edi Bej Fisnik with some provinces chafing under his rule and desirous of autonomy while the eastern half is worried about becoming subject to the Embargo imposed on the western half, a question which legal experts are divided on. Another serious issue is the difficulty of conducting a foreign policy satisfactory to the interests of the two Kalopia; eastern Kalopia remains under considerable Istalian influence while the western half is allied to Beiteynu and the rest of the anti-globalists. Under the new Constitution, the direction of foreign policy will be determined by the Presidential Council while the member states will be able to still retain a bit of autonomy.

After months of rising tension and divisions over the new country's foreign policy, the National Assembly has taken the initiative and declared the Confederation to be a permanently neutral state. Divisions had appeared in the Presidential Council with westerners supporting the continuation of an alliance with Beiteynu while easterners favoured building on their alliance with Istalia. It was Trade Councillor Prince Baibars al-Razama who proposed taking the issue to the National Assembly. There he advocated neutrality and argued that such a stance would keep the Confederation out of the perennial Majatran conflicts and also benefit the nation's enterprises competitively.

The Confederal National Asssembly

As a consequence of the neutrality declaration, all foreign bases, most notably the Beiteynuese and Istalian bases will be closed down by January 31, 4276 ditto any alliance with foreign powers, with due compensation paid out to the former allies. The Declaration also places strict limits on the executive's ability to deploy troops abroad. This can now be done under three conditions - first, a Security Council resolution, then, a vote by the Presidential Council itself and finally the approval of the National Assembly itself.

The Confederation is set to having a set of referendums in the two member states later this year. The move comes after the Confederal Superior Court's decision in Sessoldian Patriots and al-Najd Statehood Alliance v Kalopia and Kalopia Wantuni. The court ruled that all ''visible" ethnic groups with "easily determinable territories" were able to form states of their own. As such it ordered that referendums be held all over the country on the issue. It is expected that the southern province of Wantuni will vote for separate statehood while the central province of Sessold is also thought to be in favour of secession from the Siphinian dominated western Kalopia. The two northern Kalopian majority provinces of Mossavi and Minosasa on the other hand are thought to be considering enosis (union) and forming a Kalopian majority state within the Confederation. The confederal government cautiously welcomed the decision and while the member states are opposed, the movement towards secession of various nationalities is hardly a surprise and was expected by many at some point. Thus beyond some muttering about "extreme judicial activism", the member states have not expressed any intention to oppose the predicted secessions post-referendum.

The Confederation is to undergo a major re-organisation process following the peaceful January 14 referendum which saw ethnic Kalopians vote to create a unified northern federal Kalopian republic while Sessoldians vote for the creation of a "Mountainous Republic of Seshold", Majatrans chose to create a Emirate of al-Najd under the rule of the Razamid dynasty and the Siphinans found themselves reduced to just Shifine with Archon Edi Bej Fisnik declaring himself Prince of Shifine. Thus the Confederation now has four member states instead of two and analysts believe that this development will strengthen it rather than weaken it. According to Dr. Genzi Papademos from the Central Majatran Policy Institute, the Confederal government will find it easier to dominate the four smaller and weaker member states than it ever could do the two large Kalopias.

He also expressed his view that instability would now largely disappear given the sharp economic recovery since the lifting of the Embargo by the Security Council, the adoption of neutrality and radical economic liberalisation were all conducive to economic growth. Already tourists are flocking back to Kalopia's ancient sites while al-Najd prepares to re-enter the oil market, Shifine and Seshold 's famously fertile soils get readied to produce more sweet wines, fruits and cereals for export. He also theorised that the member states of the Confederation will act in a pacific manner out of concern for keeping the vigorous inter-state trade going.

Prince Baibars Elected Emir of al-Najd

Trade Councillor Prince Baibars al-Razama has been elected as the first Emir of al-Najd by the new Emirate's Shura. The Prince, well renowned for his wealth, philanthropy and liberalism is the founder of the Razamid Peace Prize and one of the most powerful Councillors in the Presidential Council. Prince Baibars has accepted the offer to rule the oil rich but war damaged Emirate, insisting that a liberal Constitution be adopted with restrictions on the Emir's authority.